How do I file a motion to remove a home from Chapter 7 Bankruptcy? 8 Answers as of June 01, 2011

My husband and I have filed Chapter 7 bankruptcy and have our court date in mid June. We have a short sale offer on our home and the bank is willing to accept the offer but want a motion to remove the house from the bankruptcy. We do not have an attorney since we filed the paperwork ourselves. The cost to have the option prepared and presented is prohibitive. Spoke with the BK rep at the bank and she advised that we file the motion ourselves, hopefully before our hearing, so that we may be able to get the release at that time. I am at a loss as to what form the motion takes and would appreciate any advice as to where to find the form for this motion and how to file it. Thank you in advance.

I believe what you want to file is a Motion to Abandon the property pursuant to 11 USC 554. You will need an attorney to prepare that for you. You can also request that the Trustee do file the abandonment papers, but it's highly unlikely the Trustee will do that prior to your initial meeting.

First, why do you care about the short sale? You will make no money on the deal, probably the realtor will so perhaps they should foot the bill the motion. Second, if you are still in the house you are living there rent free until there is a foreclosure. How is that a bad deal for you? If you still want to file the motion, every court (and judge) has slightly different procedures for motions. The motion you would need is called "relief from stay." The filing fee is $150.00. You might find the forms for this on your local court's web site. You would have to read the court's "local rules" and the judge's rules to accomplish the task.

You can attempt to prepare a Motion yourself to ask that the Trustee surrender/abandon any and all interest in the house, you may be able to get the Trustee to just agree to abandon the property for purposes of the Short Sale. As long as the Trustee abandons the property, a Short Sale should be able to go through. Most general forms can be found on the website for the Bankruptcy Court.

This is not a form motion in many districts, this would be a full-fledged hearing set motion, probably about 15 pages long total with exhibits, which must be set for a court date pursuant to the rules. Also, the date you have your 341 hearing is NOT going to happen that date is with the Trustee, and while at the courthouse, is NOT court. I do these for lenders all the time ask your agent if he/she is willing to give up the money in closing to get the deal done. After all, if the house doesnt sell, they get nothing.

Please check with the court. Explain your situation and ask for a pro-bono attorney to assist. There should be a pool of pro bono attorneys registered with the court. You could also try http://apps.americanbar.org/legalservices/probono/businesslaw/bankruptcy.shtml. Even if the Trustee and bank don't oppose the motion, you would be better off having an attorney to present to the court.

You can get permission from the Chapter 7 trustee to short sell your house. This can happen by simply waiting until the trustee abandons the property, files a declaration of no-asset or closes the case. It is not necessary to file a motion in this regard.

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